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Polaskd Compoiny manufactures and seis a singte product called a Ret. Operating at capacity, the company can produce and seil 38,000 Rets per year Costs

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Polaskd Compoiny manufactures and seis a singte product called a Ret. Operating at capacity, the company can produce and seil 38,000 Rets per year Costs associated with this level of production and sales are given below: The Hets normally self for $48 each. Foved manufactunng owethead is $266,000 per year within the range of 29,000 thirosegh 38,000 Bets peryear Required: 1. Assume that due to a recession. Holawh Company expects to seff only 20000 Rets through regular channeis nexd yeas A large retad chain has offered to purchase 9,000 Rets if Polaskis wiling to accept a 165 discount of the regular price. There would be no fales commisians on this order, thus, variable seling expenses would be slashed by 75%. However, Polaski Company would have to purchase a special machine to engrave the retail chain's name on the 9,000 units. This machene would cost $18,000. Polaski Company has no assurance that the reteil chein wir purchase additional units in the future. What is the financial advantage (disadvantage) of accepting the special onder? (Round your intermediate calculntions to 2 decimal places.) 2 Reler to vie onginal data Assume again that Polasia Company expects to sel ony 29,000 Rets through regular charineis neat year. The US. Army would like to make a one-time-only purchase or 9,000 Rets The Arny would pay a fixed fee of $1.20 per Ret and in would reimburse Polaskic Compiny for all costs of production (variable and fixed) asiociated with the units. Because the army would pick up the ferts with its own trucks, there would be no variabile selling experses associated with this ordet. What is the financal advartage (disadvantagej of accepting the U.S. Army's special order? 3. Assume the same situstion as oescribed in (2) above, except that the company expects 10 sell 38,000 Rets through iegular chanoeis nest yeak. Thus, accepting the US. Amy's order would requice giving up regular sales of 2000 fiets GNent this new information what. is the financial advantage (disadvantage) of accepting the US. Armyss special order

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